PLI Publishes Robert Hotz Article on SEC v. Obus
Practising Law Institute has published the article “SEC v. Obus and the Evolving Law of Tippee Liability in Insider Trading Cases” by Akin Gump litigation partner Robert Hotz.
The article reviews the 2nd Circuit’s 2012 decision in SEC v. Obus and its effort to make clear that, as the author states, “to be liable for insider trading a tippee need not have knowledge of the tipper’s receipt of a benefit,” even as it asks whether, in fact, that point was made clear. Hotz cites two SDNY district court decisions that reached differing conclusions on the meaning of the 2nd Circuit decision.
Hotz describes the prohibition against insider trading in the federal securities laws, reviews the two theories of insider trading and defines “tippee liability” before laying out the specifics of SEC v. Obus and providing readers with four possible interpretations of the case.
To read the full article, please click here.